The instruments used by the central bank to implement monetary policy are generally called monetary policy instruments. The Monetary Council is the main decision making body that sets the key policy rate. The monetary policy rate is used to efficiently implement interest rates.

The MNB’s most important instrument is the two-week MNB-bill. The rate on the two-week MNB-bill serves as the policy rate that reflects best the monetary policy stance and its changes. By changing the base rate the central bank affects its operating target, the 3 month money market rates and indirectly the general economic developments.